Legal basis and cited issuances
- The revised schedule of fines is adopted pursuant to Art. IV, Sec. 5.0; 5.q.2 and Art. V, Section 11 of Executive Order No. 648 and Section 38 of PD 957.
- The fines schedule also recognizes P.D. 957 provisions governing development, licensing, mortgage clearance, and related requirements for real estate transactions.
- The schedule ties certain fine categories to violations of TPZ and ULRZ/APD land use and development laws, rules, and regulations.
- The schedule references contempt and board-authority mechanisms under Art. IV, Sec. 5.Q.2 of EO 648.
- The schedule ties HLURB’s power to prescribe and impose fines (with enforcement through court processes) to Sec. 38 of PD 957.
Policy, purpose, and operative framework
- The revised schedule of fines establishes standardized administrative fines for listed violations in HLURB’s exercise of regulatory functions.
- The schedule provides distinct fine ranges (minimum, medium, maximum) by project classification for various offenses.
- The framework authorizes HLURB to impose fines according to the schedule and to consider circumstances when fixing the penalty within the applicable range.
- The framework recognizes contempt and enforcement measures when persons or entities obstruct HLURB functions or disregard lawful board orders.
Revised schedule of administrative fines
- Violation categories are grouped under I. VIOLATION, with separate sections for TPZ and ULRZ/APD violations, ULRZ/APD violations, and REM violations.
- Fine ranges are expressed with project-type tiers: Minimum, Medium, and Maximum, and for some offenses include classification bands such as Conforming and Non-Conforming and sub-bands by land use intensity.
TPZ and ULRZ/APD-related locational clearance
- Failure to secure locational clearance prior to the start of the project is punishable using project-type ranges for Conforming and Non-Conforming categories.
- Violations include project-type-specific minimum/medium/maximum amounts for Industrial, Agro-Industrial, Agricultural, Commercial, Institutional, Residential, and Special Project.
- Violations of the terms and conditions in clearance, and other violations on the requirements for locational clearance, are punishable using stated ranges 500-2000, 2001-3500, and 3501-5000.
- For offenses requiring minimum/medium/maximum amounts, the schedule imposes the corresponding range depending on the applicable classification tier.
ULRZ/APD-related sales, mortgage, and registration
- Selling without sales clearance is punishable with ranges 200-500, 501-700, and 701-1000.
- Mortgaging without mortgage clearance is punishable with ranges 100-250, 251-350, and 351-500.
- Failure to register existing rights is assigned “-do-” across the schedule’s range structure for this item.
REM-related development and licensing offenses
- Failure to secure development permit is punishable using ranges 1000-3000, 3001-6000, and 6001-10000.
- Failure to register project is assigned “-do-” across the schedule’s range structure for this item.
- Alteration of approved development permit is assigned “-do-” across the schedule’s range structure for this item.
- Non-compliance with approved development plan, incomplete development, and non-development are each assigned “-do-” across the schedule’s range structure for each corresponding item.
- Selling without license, violation of terms/conditions of development permit/license to sell, and non-delivery of title are each assigned “-do-” across the schedule’s range structure for each corresponding item.
- Failure to secure mortgage clearance is punishable with ranges 1000-2500, 2501-4000, and 4001-5500.
- Failure to secure advertisement approval is punishable with ranges 500-1000, 1001-1500, and 1501-2000.
- Imposition of realty taxes on vendee contrary to P.D. 957 is punishable with ranges 500-1000, 701-800, and 801-1000.
- Failure of developer, Broker or Salesmen to register or renew is punishable with ranges 200-500, 501-700, and 701-1000.
- Violation of other provisions of P.D. 957 is punishable with ranges 1000-3000, 3001-6000, and 6001-10000.
Board contempt and additional penalty powers
- HLURB imposes administrative fines not exceeding PHP 20,000.00 for violations of the charter and its rules and regulations under Art. IV, Sec. 5.0 of EO 648.
- HLURB may cite and declare a person, entity, or enterprise in contempt of the Board under Art. IV, Sec. 5.Q.2 of EO 648 for:
- Disorderly or disrespectful conduct before the Board or in the presence of its members or authorized representatives engaged in official functions, or during hearings or official inquiries, when the conduct obstructs, distracts, interferes with, or disturbs the performance of official functions or conduct of the hearing.
- Failure or refusal to comply with or obey without justifiable reason any lawful order, decision, writ, or process of the Board.
- For contempt under the first contempt category, HLURB may summarily impose a fine not exceeding PHP 2,000.00 and order confinement of the violator for a period not exceeding the duration of the hearing/proceeding or performance of such functions.
- For contempt under the second contempt category, HLURB may impose, in addition to the administrative fine, a fine of PHP 500.00 for each day the violation or failure/refusal continues, and order confinement until the order/decision is complied with.
- If the offender is a partnership, corporation, or association or enterprise, the fine is imposed on the entity’s assets and the President, managing partner or chief executive officer is ordered confined.
HLURB maximum fines and payment/enforcement
- Under Sec. 38 of PD 957, HLURB may prescribe and impose fines not exceeding PHP 10,000 for violations of the provisions of PD 957 or any rule or regulation thereunder.
- Fines are payable to HLURB and are enforceable through writs or execution in accordance with the provisions of the rules of court.
How administrative fines are imposed
- A fine on the schedule corresponding to the established act or omission is imposed when the listed grounds and omissions are duly established.
Grounds for imposing scheduled administrative fines
- Administrative fines apply for failure, without just cause, to secure clearances, permits, licenses, or approval required by law or regulations from HLURB.
- Administrative fines apply for failure to comply with any conditions set forth in HLURB-issued clearances, permits, licenses, or approval.
- Administrative fines apply for failure to complete development, non-provision of required facilities, non-compliance with an approved development plan, or alteration without approval in case of subdivisions, condominiums, or townhouses.
- Administrative fines apply for selling without a license to sell or advertising without approval, and for selling, mortgaging, leasing, or otherwise encumbering lands/properties within Urban Land Reform Zones or Areas for Priority Development without Board approval/clearances.
- Administrative fines apply for misrepresentation of facts and circumstances relative to the project at the time of application or monitoring.
- Administrative fines apply for failure to obey or comply with an HLURB order after monitoring establishes a violation.
Factors considered in choosing the range/amount
- HLURB considers the extent of impact or gravity of the violation.
- HLURB considers the presence of attending circumstances and/or good or bad faith of the violator.
- HLURB considers presence or possibility of damage, prejudice, or inconvenience to residents, neighbors, and/or the community, and physical, social, or economic impact on surrounding land-use neighborhood.
- HLURB considers the implications of continued existence of the violation on attainment of purposes of laws and regulations.
- HLURB considers the presence, nature, and frequency of a history of violations.
General rules for fixing penalties
- In the absence of mitigating or aggravating circumstances, the Medium Range applies.
- One mitigating circumstance generally offsets and cancels one aggravating circumstance, except:
- Repeated violation is a special aggravating circumstance that is offset only by two (2) mitigating circumstances.
- Lack of foreknowledge and ignorance of the law is a privileged mitigating circumstance only when the circumstances listed in II D.6 are absent, and it can be offset only by two (2) aggravating circumstances.
- Within each range (minimum, medium, maximum), fine amounts are set through sub-ranges based on project classification by land use intensity (e.g., R1, R2, C1, C2, I1, I2), with:
- Lowest intensity imposing the minimum amount for that range; and
- Highest intensity imposing the maximum amount in that range.
- Within each sub-range, “High” and “Low” periods apply depending on the presence or absence of local zoning regulations at the time the offense is committed.
- The extent of a period is computed by dividing the sum of the minimum and maximum amounts of each period/sub-range by the number of periods/sub-ranges, then reckoning the resulting quotient from the minimum amount of the range or the maximum amount of the preceding sub-range as the case may be.
Exemptions, mitigators, and aggravators
Circumstances exempting the violator
- A violator is exempt from fines when zoning/locational clearance and/or other permits with apparent authority were secured, provided that:
- The permit is secured prior to establishment of the project.
- The proponent voluntarily applies for proper clearance from HLURB after securing local permits.
- Proper remedial measures are instituted where there are existing complaints.
- A violator is exempt from fines when the project is undertaken by other government agencies and/or corporations.
- A violator is exempt when the project is established in municipalities without town plans/zoning ordinances and other permits justifying the project’s existence were secured.
- A violator is exempt when the property is within APD/ULRZ but is not occupied by qualified tenants, and the sale/mortgage occurs under any of the following circumstances:
- Between members of the same family or relatives up to third degree.
- Arising out of partition among co-heirs and co-owners.
- When the property area is less than one hundred (100) square meters.
- When the sale/mortgage or encumbrance is due to immediate medical emergency requiring medical expenses or to defray funeral expenses of immediate family members, or extraordinary expenses in case of fire, flood, and other natural calamities.
- A violator is exempt when non-completion of development of a portion of a subdivision is beyond the developer’s control, including deterioration of peace and order, force majeure, or illegal occupation, and including shortage of materials or extraordinary devaluation of currency.
- A violator is exempt for lack of foreknowledge and/or ignorance of laws and regulations on locational clearance/subdivision regulations when:
- The project location is in a remote area, or responsible officials failed to disseminate information concerning pertinent requirements, or require the same; and
- Analogous facts/information exist that may warrant exemption from fine.
Mitigating circumstances warranting minimum fines
- HLURB imposes the Minimum Level of Fine when the violation has very minimal adverse impact on adjoining areas or projects or on the rights of affected parties.
- HLURB imposes the Minimum Level of Fine when failure to do a required act is due to unforeseen or unavoidable circumstances not totally beyond the violator’s control and brought by the violator.
- HLURB imposes the Minimum Level of Fine when the violation, although not conforming, poses no present danger to public health, safety, convenience, and peace and order.
- HLURB imposes the Minimum Level of Fine when the violation can be easily rectified and compliance can still be achieved.
- HLURB imposes the Minimum Level of Fine where the violator was negligent in failing to immediately comply but no adverse consequences have been noted.
- HLURB imposes the Minimum Level of Fine when other additional facts/information mitigate imposition of the minimum range of fine.
Aggravating circumstances warranting maximum penalties
- HLURB increases liability toward maximum penalties/fines when the violator’s status/standing/experience supports presuming awareness of the requirements of the law and regulations.
- HLURB increases liability toward maximum penalties/fines when the violator has a history of similar offenses or violations over several occasions.
- HLURB increases liability toward maximum penalties/fines when no remedial/corrective measures are made despite due notices, or when measures are undertaken but remain inadequate.
- HLURB increases liability toward maximum penalties/fines when the owner/developer fails to complete the development without just cause or despite granted extension.
- HLURB increases liability toward maximum penalties/fines when the violation is deliberately committed or completely without reasonable cause.
- HLURB increases liability toward maximum penalties/fines when the project/transaction is subject to actual complaints found valid after proper investigation.
Reconsideration and transitory clemency
Grounds for reconsideration
- A motion for reconsideration of an order imposing penalties/fines is filed on grounds that:
- The penalty or fine is not in accordance with or not authorized by law or existing regulations.
- The fine is excessive, unreasonable, oppressive, or arbitrary.
- The findings of fact do not conform to the truth or do not provide sufficient basis for the imposition of the fine.
Transitory clemency provisions
- Proponents/owners/developers of projects existing at the time of promulgation of the resolution are relieved of any pecuniary liability if they secure the necessary clearance/permits/licenses/approval within six (6) months from effectivity, or rectify violations of applicable standards and regulations.
- If the same proponents/owners/developers secure the necessary items within the next following six (6) months, the penalty imposable is within the next two (2) ranges lower than that prescribed in the resolution.
- Proponents/owners/developers of projects established within the next six (6) months after adoption are entitled to exemption from and/or reduction of penalty if they secure required items within six (6) months from establishment or commission of violation.
- Proponents/owners/developers of projects established within the next six (6) months after adoption are entitled to exemption from and/or reduction of penalty if they secure required items within one (1) year from establishment or commission of violation.
Effectivity and publication rule
- The revised rules take effect after publication for two (2) consecutive weeks in two (2) newspapers of general circulation.
- The adoption date is 17 August 2000, and the administrative order is dated December 04, 2000.
- The publication mechanism is stated to operate through the 08 and 15 September 2000 issues of Malaya, with effectivity immediately after such publication.